SEC and DOJ update tackles corruption, compliance

While the federal government may be facing a shutdown, certain governmental agencies have certainly been busy over the past few weeks. The Justice Department (DOJ) and Securities and Exchange Commission (SEC) have been tackling issues of corruption and compliance in companies large and small.

JPMorganChase has been the subject of an ongoing investigation at the hands of the DOJ. The investigation concerns bad mortgage securities the bank offered during the run up to the financial crisis. The company is reportedly in talks to pay upwards of $11 billion. This would include $4 billion in restitution to struggling homeowners and $7 billion in fines payable to the DOJ.

As for the SEC, it continues to focus on companies of all sizes. One recent case involves a hedge fund, SAC Capital, which is hoping to settle with the SEC. The SEC charged the founder of the hedge fund after he allegedly ignored signs that two traders were using illegal tips. In another case, the SEC targeted a Christian video game maker, Left Behind Games, Inc., which allegedly colluded with a business consultant to increase the value of the company and profit from the sale of stock that had little or no value.

These are just some of the topics that have been on the radar of the SEC and the DOJ. For anyone interested in learning more about the enforcement trends from these two agencies, a session at the upcoming Women, Influence and Power in Law conference will cover these topics and more.

“SEC, DOJ and Corporate Finance and Governance Regulatory Update” will take place on Oct. 3 and will feature the following speakers: Nancy Kestenbaum, partner, co-chair, White Collar Defense and Investigations Practice Group – Covington & Burling LLP; Michele Anderson, chief, Office of Mergers and Acquisitions – Securities and Exchange Commission; Antonia Chion, associate director of the Division of Enforcement – U.S. Securities and Exchange Commission; and Mythili Raman, acting assistant attorney general, Criminal Division at the United States Department of Justice.

The Women, Influence & Power in Law conference offers an opportunity for unprecedented exchange with women outside counsel. The event runs from Oct. 2-4 and is being held at the Wardman Park Hotel in Washington, D.C.